Q222
Which of the following is TRUE about the treatment of insurance premium paid in advance
A.
Current asset
AnswerB.
Current liability
C.
Short term liability
D.
Fixed asset
Answer: Option A
Solution
Answer: Option A
Solution:
Current asset is TRUE about the treatment of insurance premium paid in advance. Current assets represent all the assets of a company that are expected to be conveniently sold, consumed, utilized or exhausted through the standard business operations, which can lead to their conversion to a cash value over the next one year period.